Afcons Infrastructure (AFCONS) Q2 24/25 earnings summary

Executive summary

• Achieved record-high EBITDA margin of 13.8% in Q2 FY25 and 12.7% for H1 FY25, with PAT up 30% YoY for Q2 and 16.3% YoY for H1.

• Q2 FY25 revenue was ₹2,959.69 crore and total income ₹3,089.58 crore; H1 FY25 revenue was ₹6,114.05 crore and total income ₹6,303.05 crore, reflecting a marginal YoY decline due to muted order book and external factors.

• Order book at end-September stood at INR 34,152 crores, with INR 8,925 crores order inflow in H1 and L1 bids of INR 10,154 crores.

• IPO completed post-quarter, raising ₹5,430 crore, with shares listed on NSE and BSE on November 4, 2024.

• IPO proceeds used primarily for debt repayment and working capital; net debt post-IPO is below INR 2,000 crores.

Financial highlights

• Q2 FY25 EBITDA: INR 427 crores (13.8% margin), up 8.5% YoY; H1 FY25 EBITDA: INR 799 crores (12.7% margin), up 12.9% YoY.

• Q2 FY25 PAT: INR 135 crores (4.4% margin), up 30% YoY; H1 FY25 PAT: INR 227 crores (3.6% margin), up 16.4% YoY.

• Net worth at end-H1 FY25: INR 3,794 crores.

• As of September 30, 2024, consolidated total assets were ₹17,652.73 crore.

• Basic and diluted EPS for Q2 FY25 was ₹3.97; H1 FY25 EPS was ₹6.66.

Outlook and guidance

• FY25 revenue expected to be flat to nominal growth; FY26 revenue growth guidance at 20%-25%.

• Medium- to long-term revenue CAGR targeted at 15%-16%.

• EBITDA margin guidance remains at 11%+.

• Operating cash flow expected to be positive for the full year as payment cycles normalize.

• Quarterly margins may vary due to project mix and quantum of work.